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They want to know whether there have been any breaches of the general or statutory law and whether there is any action that they can take in relation to the events which have occurred. Advise them.


BUSN2101 LAW OF BUSINESS ENTITIES

 

ASSIGNMENT

 

Due: 5 May 5 pm

 

The assignment is to be submitted via turnitin on wattle

 

Word limit: 1,500 words (10% tolerance either way acceptable)

 

Marks: this assignment is worth 20% of your final mark.

 

Please refer to the course outline for details on how the assignment will be assessed and

 

further details on submission and presentation. Note that late penalties apply.

 

Referencing should be in accordance with the Australian Guide to Legal Citation

 

http://www.law.unimelb.edu.au/files/dmfile/FinalOnlinePDF-2012Reprint.pdf

 

For general information on referencing see

 

https://academicskills.anu.edu.au/resources/handouts/referencing-basics

 

Assignment question

 

Winanga Station Pty Ltd owns a large farming property in western New South Wales. Ted is

 

the majority shareholder owning 55% of the shares. His wife Veronica owns 10% and their

 

three children own the remaining shares. Andrew owns 15%, James 10% and Diana 10%.

 

Ted, Veronica and Andrew are directors of the company and the only ones involved in the

 

running of the station. Until recently Ted had been managing director but he recently

 

relinquished this role, wanting to be less active in the management of the company and

 

Andrew is now managing director.

 

Ted and Veronica live in a house on the company property and Andrew and his wife Lucy

 

also live on the company property in another residence. James is at university in Canberra

 

and Diana is a doctor living in Dubbo.

 

Diana and James have concerns about a number of things which have happened. The property

 

has been in drought and stock levels have been reduced as a consequence. Several properties

 

in the district have been sold by the bank as they have been unable to keep up with

 

repayments on their mortgages. Diana and James believe that an unsolicited offer for the

 

property was made to Winanga Station Pty Ltd via the local stock and station agent. The offer

 

was above market value in the current depressed market climate.

 

The offer was rejected by the board. They had no interest in selling at this stage, particularly

 

because the buyer was foreign and Ted said he ?wasn?t interested in selling off the family

 

farm to foreigners.?

 

It has also come to Diana and James? notice that Winanga has lent $10,000 (unsecured) to

 

Lucy so that she can start an online children?s fashion business. The loan is at 1% below the

 

rate the bank offered her and the bank was only prepared to lend her $5,000 on an unsecured

 

basis. The bank would only have given a $10,000 loan if it was secured.

 


 

For many years Ted and Veronica have supported the local National Party member Warwick

 

Knowles. At the next federal election Warwick has said that he is going to stand as an

 

independent and not stand for the National Party. Diana and James understand that Winanga

 

has contributed $20,000 to Warwick?s election campaign.

 

Diana and James are really angry about this as they think Warwick is a turncoat and should

 

not be supported as an independent. This is the final straw which leads them to seek your

 

advice. They think Winanga is being run for the benefit of those living on the company

 

property and that their interests are being ignored. They have not received a dividend for 3

 

years.

 

They want to know whether there have been any breaches of the general or statutory

 

law and whether there is any action that they can take in relation to the events which

 

have occurred. Advise them.

 


 

 

Paper#9210744 | Written in 27-Jul-2016

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